March 9, 2020

SEC Requests Comment on Fund Names Rule; Seeks to Eliminate Misleading Fund Names

On March 2, 2020, the SEC published a release seeking public comment on current requirements that restrict the use of potentially misleading fund names (principally, Rule 35d-1 under the 1940 Act (Names Rule)). The release notes that fund names are often the first piece of information investors see and that…

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February 24, 2020

Blackstone Receives Order on Novel Exemptive Application under the 1940 Act

On February 19, 2020, the SEC issued an order granting an application for exemptive relief filed by Blackstone Alternative Investment Funds (Blackstone Trust) and Blackstone Alternative Investment Advisors LLC. The exemptive relief permits the Blackstone Trust’s board of trustees to approve new sub-advisory agreements and material amendments to existing sub-advisory…

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February 24, 2020

Non-Transparent ETFs Receive Approvals to List on an Exchange

Earlier this month, certain non-transparent ETFs (NT ETFs) received approval to be able to list on an exchange. On February 12 and 20, 2020, the SEC approved Cboe BZX Exchange, Inc.’s (Cboe) proposals to list and trade shares of American Century Focused Dynamic Growth ETF, American Century Focused Large Cap…

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January 24, 2020

Blackstone Receives Notice on Novel Exemptive Application under the 1940 Act

On January 21, 2020, the SEC issued a “notice” relating to an exemptive application filed by Blackstone Alternative Investment Funds (Blackstone Trust) and Blackstone Alternative Investment Advisors LLC (Blackstone). The application requests relief that would permit the Blackstone Trust’s board of trustees to approve new sub-advisory agreements and material amendments…

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January 16, 2020

Major Exchanges for ETFs Have Filed Proposed Rule Changes to Establish Generic Listing Standards for ETF Shares Permitted to Rely on Rule 6c-11

NYSE Arca, Inc., the Nasdaq Stock Market LLC (NASDAQ), and Cboe BZX Exchange have filed proposed rule changes with the SEC to establish generic listing standards for exchange-traded funds (ETFs) that are permitted to operate in reliance on Rule 6c-11 under the 1940 Act. The proposed changes would largely simplify…

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January 16, 2020

SEC Proposes to Modernize Auditor Independence Rules

On December 30, 2019, the SEC proposed amendments to codify certain staff consultations and modernize certain aspects of its auditor independence regulatory framework (Proposed Amendments). The Proposed Amendments are intended to eliminate non-substantive rule breaches and unnecessary reviews by audit committees of non-substantive matters (i.e., relationships and services that would…

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January 8, 2020

Non-Transparent ETF Sponsors Request Additional Relief

Since the SEC issued orders to grant exemptive relief requested in applications filed by Blue Tractor Group, LLC, Fidelity Management & Research Company, Natixis Advisors, L.P., and T. Rowe Price Associates, Inc. to launch a type of non-transparent exchange-traded fund (NT ETF) that follows a proxy portfolio model on December…

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December 23, 2019

SEC Grants Exemptive Applications of Additional Non-Transparent ETF Sponsors

On December 10, 2019, the SEC issued orders to grant exemptive relief requested in applications filed by Blue Tractor Group, LLC, Fidelity Management & Research Company, Natixis Advisors, L.P., and T. Rowe Price Associates, Inc. to launch a type of non-transparent exchange-traded fund (NT ETF) that follows a proxy portfolio…

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November 18, 2019

SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert to Provide Observations from Examinations of Investment Companies and Observations from Money Market Fund and Target Date Fund Examination Initiatives

On November 7, 2019, the staff of the SEC’s Office of Compliance Inspections and Examinations (staff) issued a risk alert (Risk Alert) on the most frequently cited deficiencies and weaknesses that the staff has observed in recent examinations of registered investment companies. The Risk Alert also provides staff observations from national examination initiatives relating to money market funds and target date funds.

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November 8, 2019

SEC Proposes Updates to Filing Fee Disclosure and Payment Methods

On October 24, 2019, the SEC issued a release proposing amendments to various rules and forms under the 1933 Act, 1934 Act and 1940 Act (Release) applicable to investment companies registered under the 1940 Act (funds). The amendments would, among other things, require filing fee disclosures under Forms N-2, N-5…

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